Tenant claims back 20,000 euros in rent

After seven years of legal proceedings, a court in Esch/Alzette has ruled that a Bettembourg landlord has to pay back over 20,000 euros in excess rent to the tenant of a studio flat.

01.08.2014

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(CS) After seven years of legal proceedings, a court in Esch/Alzette has ruled that a Bettembourg landlord has to pay back over 20,000 euros in excess rent to the tenant of a studio flat.

The story begins in 2006 when the tenant signed a lease for the studio, with rent fixed at 600 euros per month, including 170 euros for utilities. A year later, the tenant demanded that rent should be cut in half, because of a 2006 law, which states that landlord income from rent cannot exceed 5 percent of the capital invested into the property.

At the beginning of 2009, based on an expert report which pointed out several deficiencies of the one-room flat with a kitchenette and separate bathroom, rent was fixed at 350 euros per month. Utilities remained at 170 euros, but the decision was valid retroactively from February 28.

However, the tenant persisted and in the summer of 2009 once again demanded at the court in Esch/Alzette that rent be lowered to 250 euros retroactively from September 2007, with just 30 euros for utilities.

A second expert was unable to procure information from the landlord about investments into the property. Without any bills or other documents to prove investment, the 2006 law sets the price the landlord paid to purchase the property as the guideline.

Using this as a starting point, the expert concluded that rent should not surpass 1,600 euros per year, or 133,34 euros per month. Because the flat was furnished, the law allows this sum to be doubled, resulting in 266.68 euros.

The court finally decided that monthly rent should be 250 euros, with 30 euros for utilities, as demanded by the tenant.

Excess rent paid and due to the tenant was fixed at 21,440 euros, and in July this year the court in Esch/Alzette summoned the property owner to pay this sum, as well as covering 1,100 euros in legal fees.